# How do I find an interest rate using the formula #a=p(1+r)^t#?

##### 1 Answer

Sep 15, 2014

To find the interest rate (r) in the formula **a** and divide it by **p**. You will then take that result and take the **t root** of it. You then subtract that answer by 1 to get your interest rate in decimal form.

Here is an example:

You need to find the interest rate of an account that grew from $4000 to $4063 in 2 years.

interest rate rounds to